If you’ve known someone that’s been through a divorce, then you likely know that it’s hard on many different levels. It’s quite difficult on a financial level. One of the reasons that it’s difficult for divorcing spouses to reach a settlement in their case is because they know that a single misstep may affect you and your family’s long-term financial security.
One of the hardest things for divorcing spouses to do is to divide up their property. This is particularly difficult for spouses to do if they have multiple homes or significant funds tied up in stocks.
Judges in equitable distribution states like Florida consider various factors like each spouse’s contribution to the marriage when dividing up assets. This is why many high-net-worth individuals choose to mediate their divorces as opposed to letting a judge decide what happens with them.
Couples who mediate their divorces often end up coming up with better strategies about how to divide up their property. One spouse may agree to take the boat while the other maybe keep the artwork, for example. Some of the most difficult items for divorcing couples to split up are complex assets like debt and retirement plans.
Divorcing couples should use their credit reports to make an accounting of all the debts that they have. You both should close all your joint credit cards. You two be able to reach an agreement whereby one of you receives more property in exchange for paying off any outstanding debts. You may also simply agree to split what’s owed down the middle. Any decision that you reach should be put in writing.
Most jurisdictions allow a spouse to claim at least one-half of their husband or wife’s retirement plan. You’ll be subject to a 10% tax penalty if you take an early withdrawal from this account though. This can affect how much you ultimately receive.
Divorce can affect whether you’re able to file a joint return or claim a deduction for the kids and the tax bracket you fall into.
High-net-worth couples have many unique financial concerns that have to be sorted out before ending their marriages. An attorney in Fort Myers can help you understand all aspects involved with a Florida divorce so that you make the best choices for your future financial security.